Detroit, Michigan – In its annual report filed with the U.S. Securities and Exchange Commission, General Motors’ auditor said it has “substantial doubt” about the automaker’s ability to survive without major restructuring or declaring bankruptcy.
In a statement, the automaker said that “Auditors are required to assess whether there is substantial doubt about an entity’s ability to continue as a going concern over the next year. Given GM’s public statements on our liquidity position dating back to the end of 2008 and more fully disclosed in our February 17 viability plan submission, the opinion rendered in our 10-K was not unexpected.”
GM said the opinion is dependent on a number of factors, including its ability to execute its viability plan, comply with U.S. Treasury loans, access additional funding from the U.S. and certain other governments, and on the volume recovery of the industry. “Once global automotive sales recover and GM’s restructuring actions generate the anticipated savings and benefits, the company is expected to again be able to fund its own operating requirements.”
The company said the auditor’s opinion on its viability has no impact on the “aggressive actions” the company is taking to restructure for long-term viability.